Donald Trump is expected to give one of the top contenders for Treasury secretary a different gig in his administration—a decision that may ruffle some feathers inside his inner circle.
Howard Lutnick is likely to be announced as Trump’s Commerce secretary, Punchbowl News and CNN reported Tuesday. It’s an important job, but is not the position of leading the U.S. Department of the Treasury that Lutnick had long been vied for.
The decision puts Trump at odds with some of those closest to him. Lutnick, who is still serving as the Trump transition co-chair, was backed publicly by both Elon Musk and Robert F. Kennedy Jr to land the Treasury gig.
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Lutnick had been getting on Trump’s nerves behind closed doors, however, sources told The New York Times this weekend. That’s supposedly because Lutnick had been hovering around the president-elect too often and because Trump feared his transition chief may have manipulated things for his own personal benefit.
Other reports have since corroborated the Times’ claim. Wall Street insiders told the Financial Times that Lutnick was a “swashbuckler” who was important to the Trump campaign but would be ill-qualified as Treasury Secretary. Others claimed he took advantage of his position close to Trump to promote himself for the job.
“It’s unfortunate that Howard...is now abusing his position to put his candidacy ahead of everybody else,” a person close to Trump told the Financial Times. “I’m sure the president will not be bullied into picking him—it would be a huge mistake.”
With Lutnick expected to be out of the Treasury picture soon, it appears that the most-likely candidate for the position is the hedge fund manager Scott Bessent—the preferred choice of much of Wall Street. Others being reportedly considered includes Sen. Bill Hagerty (R-TN), former Fed governor Kevin Warsh, and Apollo Global Management CEO Marc Rowan.
CNN reported that Lutnick being chosen as Commerce secretary came as a surprise to many in Trump’s orbit. The network added that Linda McMahon, a former administrator of the Small Business Administration who also works for Trump’s transition team, had been viewed as the favorite to land the gig. The Wall Street Journal reported she’s still in the running to be education secretary or the U.S. ambassador to the United Kingdom.
Lutnick, 63, is the chairman and CEO of Cantor Fitzgerald, an investment firm he joined in the 1980s after graduating with a bachelor’s degree in economics from Haverford College. He and Trump have known each other for decades, first running into each other at events across New York City.
Since Election Day, the Journal reported he’s spent most days at Mar-a-Lago where he’s been “poring over shortlists of candidates for positions in the administration.”
If confirmed by the Senate, Lutnick will be tasked with carrying out and advising Trump on economic policy as Commerce secretary. He’s shared publicly that he’s in favor of increasing tariffs on foreign goods—one of Trump’s most-ardent campaign promises that many economists fear will trigger trade wars.
